topic how to correctly input two 1098s for a mortgage loan that was refinanced with same lender. in Home loans

how to correctly input two 1098s for a mortgage loan that was refinanced with same lender.

SA_home — Mon, 17 May 2021 00:13:58 GMT

In March 2020, I refinanced my prior mortgage loan and did it with the same lender. The original loan had mortgage interest and the new loan does not have any mortgage interest. I have read that you are to combine section 1 from both 1098s, and section 10 from both 1098s. Since I had mortgage interest on the original loan do I input it only for this loan in turbotax or enter it on the new loan? Also, it is combining the outstanding mortgage principal of the two loans resulting in over $1 million when each loan was only around $550k. Since I have the lender listed twice for receiving 1098s, I don't know which one is to contain zeros and which one is to contain the combined amounts. Can someone please walk me through it clearer?

Here are the specifics:

original loan: section 1 $6457.59, section 2 $545940.49, section 3 mortgage origination date 1/25/19, section 5 $1427.58, section 6 zero, 7 box is not marked, section 10 $4541.28, section 11 blank

New loan: section 1 $15276.72, section 2 $555000, section 3 3/6/20, sections 4, 5,and 6 are zero, section 7 box is marked, section 10 $4863.72, section 11 is blank

For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

vaishali101 — Wed, 11 Feb 2026 10:50:51 GMT

I am using TurboTax home & business v23. I bought a house in Jan 2022 for 550K (structure $500K, land 50K) and put it on rent in 2022. I am a professional investor and can deduct 100% of the losses incurred due to the property.

I took MACRS depreciation deduction of $18,181 on it on a 27.5 year schedule ($500k/27.5=$18,181) in 2022.

so ($500k-$18181=) $481819 of depreciation remains to be taken over next 26.5 years. But instead of continuing on this path I would like to switch to one time cost segregation bonus depreciation deduction on assets that are on a 5 year and 15 year depreciation schedule.

I had a cost segregation study done and was told items worth $126K are on a 5 year/15 year depreciation schedule.

I am filling my 2023 tax returns and would like to take advantage of the fact that bonus depreciation deductible % for year 2022 is 100%.

I understand i will need to file form 3115 to let IRS know about the change in accounting method.

My question is, how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for the $126K worth of assets in the house in my '23 tax returns in turbotax? Currently I do not see a way to do this in Turbotax also couldn't find a clear answer in the current QA. Thank you for your help.

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

Anonymous_ — Sun, 06 Oct 2024 18:12:07 GMT

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

vaishali101 — Sun, 06 Oct 2024 16:42:02 GMT

Thanks.

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

Anonymous_ — Mon, 23 Dec 2024 17:01:44 GMT

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

vaishali101 — Sun, 06 Oct 2024 17:10:03 GMT

I am real estate agent plus a landlord (buying and renting houses). I am not a real estate dealer or planning to flip. Thanks.

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

Anonymous_ — Mon, 23 Dec 2024 17:02:13 GMT

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

vaishali101 — Sun, 06 Oct 2024 17:30:31 GMT

Your copy-paste reply does not answer my question, even remotely.

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

vaishali101 — Sun, 06 Oct 2024 17:33:30 GMT

@Anonymous_ You are polluting this thread. Please stop responding.

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

Anonymous_ — Mon, 23 Dec 2024 17:02:33 GMT

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

Anonymous_ — Mon, 23 Dec 2024 17:02:50 GMT

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

vaishali101 — Sun, 06 Oct 2024 18:16:01 GMT

Please stay off of this thread. Your responses are useless/not making any sense, will only confuse and waste time of others who may be looking for real, informative answers to my question above.

Re: For a house I bought and put in service in '22 how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for '23 tax return for the $126K worth of 5/15 year depreciable assets in the house in turbo tax?

Anonymous_ — Mon, 23 Dec 2024 17:03:07 GMT